Godrej Properties (GODREJPROP) Q4 16/17 earnings summary

Executive summary

• FY17 headline total income fell 24% to ₹1,733 crore, while EBITDA rose 42% to ₹401 crore and net profit rose 30% to ₹207 crore; early revenue recognition at The Trees supported profit growth.

• In a weak property market, bookings reached 3.1 million sq. ft. and ₹2,020 crore; seven projects adding 18 million sq. ft. of saleable area were secured.

• Delivered 4.55 million sq. ft. across four cities, including 3.27 million residential and 1.28 million commercial sq. ft.

Financial highlights

• Consolidated revenue from operations was ₹1,582.93 crore vs ₹2,122.61 crore in FY16; total income was ₹1,708.35 crore vs ₹2,252.06 crore.

• Consolidated profit was ₹206.80 crore vs ₹159.76 crore; EPS was ₹9.60 basic and ₹9.55 diluted vs ₹7.56 and ₹7.52.

• Standalone revenue from operations was ₹457.14 crore vs ₹374.17 crore; profit after tax was ₹124.25 crore vs ₹22.73 crore, with basic EPS of ₹5.77 vs ₹1.08.

• Consolidated finance costs rose to ₹101.53 crore from ₹40.57 crore; ₹190.33 crore of finance cost was capitalized to projects.

• Consolidated operating cash flow was negative ₹566.29 crore vs positive ₹489.79 crore, reflecting working-capital movements; financing cash flow was negative ₹554.36 crore.

Outlook and guidance

• FY17 was described as a transition year; short-term uncertainty from demonetization and RERA was expected to give way to consolidation, stronger governance and improved consumer confidence.

• Rising incomes, stagnant prices and lower interest rates were expected to improve affordability and support a stronger sector outlook over the following years.

• Medium-term goals include top-three booking-value rankings in Mumbai, NCR, Bengaluru and Pune, and return on equity above 20%.

• Priorities include faster project launches and delivery, stronger sales distribution, operational efficiency, returns on capital and continued landowner joint-development agreements.